Al-Futtaim Automotive Reveals Strong H1 Results, Reflecting Continuing Rebound For Automotive Industry
Al-Futtaim Automotive, which provides some of the world’s most-recognized automotive brands, services, and mobility solutions to customers across the region, has revealed a strong first half of the year, reflecting the ongoing rebound of the automotive sector. The Al-Futtaim Group company, which counts Al-Futtaim Toyota and Lexus, Trading Enterprises (Honda, Volvo, Jeep, RAM, Dodge) and Polestar amongst its brands, today revealed key insights and data from the first six months of 2022.
According to the latest Al-Futtaim Automotive data, the overall automotive market is up 9.3% compared to the first six months of 2021. Reflecting this positive momentum, Al-Futtaim Automotive closed out the first half of the year with a total market share of 35.4%, selling 40,542 vehicles, up 2,190 units versus first half of 2021.
SUVs continue to dominate the UAE market, making up 50.5% of sales for the first half of the year. Toyota is the market leader in the SUV segment, accounting for 25.2% of sales from January to June. Toyota saw an 11.4% increase in total volume year on year and 0.5% increase in market share. The growth also continues across Al-Futtaim Automotive’s brands:
– Volvo has increased volume by 1.6% year to date
– Dodge and RAM have witnessed a 14.4% volume increase for H1 2022 compared to H1 2021, with RAM holding the number one position in the large pickup segment increasing segment share by 18.4%
– The Polestar 2, which Al-Futtaim Automotive brought to the market along with the brand’s entry in February, has completely sold out of all stock reflecting global trends. In July, Polestar reported globally the delivery of approximately 21,200 cars in the first six months of 2022, more than doubling deliveries from 9,510 cars in the same period in 2021 – an increase of almost 125%.
While the luxury vehicle market is down 10.3% overall, Lexus has managed to increase its luxury market share by 1.2%, with the Lexus IS, Lexus LX and all-new Lexus NX remaining popular models.
Al-Futtaim Automotive continues to introduce new products and services to keep the UAE moving towards building a more sustainable future of mobility and support the UAE’s vision for sustainable development and the UAE National Smart Mobility. It currently offers a wide range of hybrid and electrical vehicles with demand for these types of vehicles stronger than it has ever been. This can be attributed not just to rising fuel prices, which are helping to accelerate the growth, but also due to growing customer awareness and acceptance of the technology, the environmental advantages, the fun factor of the faster acceleration and lower centre of gravity and the smooth and silent driving characteristics of the electric powertrain.
Trading Enterprises Volvo recently launched the Volvo XC40 Recharge compact SUV and the C40 Recharge compact Crossover in the UAE, both of which feature fully electric powertrains. While introduced in the last few months, there has been strong demand to date with sales following global trends.
Vincent Wijnen, Senior Managing Director Al-Futtaim Automotive said: “We are thrilled by the strong demand and positive momentum so far in 2022, with our sales only limited by the global supply chain challenges. Al-Futtaim Automotive increased market share in some key segments with one of our leading marques, Toyota, continuing to dominate the SUV and car market. The increase in sales is a direct result of our continued commitment to deliver on our brand promise of enriching the lives of our customers every day.”
Touching on Al-Futtaim Automotive’s commitment to the UAE’s vision, he added, “The UAE’s Net Zero strategy brings an opportunity for automotive manufacturers and dealerships to embrace it and be a driver of change to support this vision. On our part, Al-Futtaim’s entrepreneurship and relentless customer focus enables us to grow and expand, responding to the changing needs of our customers through digitized services and hybrid and electric offerings. We have started strongly and can assure customers we will continue introducing products and services that they want and need.”
Highlights from the first half of the year also include new car launches including the all-new NX and LX 600 from Lexus, the Jeep Grand Cherokee L and Jeep Wrangler 392, the Volvo C40, the RAM Limited 1500 as well as the launch of the first Polestar in the UAE, the Polestar 2. In addition, Lexus was ranked as the second most loved brand in the MEA region according to the Brand Love 2022 report published by Talkwalker, an industry-leading consumer intelligence platform, making it the only automotive brand in the top 10.
The Al-Futtaim Automotive Industrial Equipment Division, which represents a multitude of quality brands has also witnessed substantial year on year growth in the first half of 2022:
– Serving the UAE’s thriving essential industries of construction, manufacturing, logistics, airlines, e-commerce and public transport; in the first half of 2022 the division yielded 130% increase in volume year on year and 3% increase in market share in construction equipment
– Toyota Material Handling Equipment saw a 65% increase in volume with a 4% increase in market share
– In the European Truck segment, Volvo Trucks saw a 38% volume increase and 5% market share enhancement
– Hino Trucks continues its market lead in the Japanese Trucks segment and achieved a 3% increase in volume
– Eicher Bus, which continues to secure 25% of the Dubai Public Transport Buses fleet, 30% of Abu Dhabi’s Public Transport Buses Fleet and a projected 50% of Sharjah’s Public Transport Buses by year-end, saw a 104% volume increase with a 3% market share increase.
Beyond the vehicles it provides for both the B2C and B2B sector, Al-Futtaim Automotive also offers alternative ways to drive. In October last year it announced the launch of new car subscription service, MOOV By Al-Futtaim, aimed at providing convenient and sustainable mobility for the growing demand from customers across the UAE. Since launch, customer base has grown by 70% each month, demonstrating the demand for the service as well as appetite for digital offering which is being catered to by Al-Futtaim Automotive.
By taking a short-term and no-commitment subscription, users can access a wide variety of car models, including options of hybrid vehicles (Toyota CHR, Toyota Corolla Cross and Toyota Camry available now, with Toyota Highlander Hybrid in July), and beginning of Q3, electric vehicles will also be available, making MOOV By Al-Futtaim the first car subscription service to offer electric vehicles. Approximately 25% of the current fleet on MOOV is hybrid with 100% utilization.
Al-Futtaim Automotive is one of five divisions within the Al-Futtaim Group, which provides quality products and services that enrich people’s lives and aspirations each and every day.